Dec. 1, 2022
Dollar/Yen dropped to 135.5, hitting its lowest point in 3 months. Later, it recovered 32 pips and is now trading at 135.83.
Dollar/Yen is currently trading at 135.83 following the release of ISM Manufacturing PMI (Nov) data from the United States.
Data for United States Initial Jobless Claims published today at 13:30 UTC came out at 225,000, beating projections of 235,000 and showing improvement over the preceding figure of 241,000.
Meanwhile, United States ISM Manufacturing PMI (Nov) released today at 15:00 UTC with a figure of 49, while the previous figure was 50.2. United States Core PCE Price Index (MoM) (Oct) came out at 0.2, while a consensus of analysts was expecting 0.3.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In Dollar/Yen's case, the index has fallen below 30, signalling that the asset is oversold. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at 135.4, a low enough level to, generally, suggest that Dollar/Yen is trading below its fair value. Visual analysis of Dollar/Yen's chart shows that the resistance level is at 138.11, followed by 138.26.
With market volatility ebbing, the current technical outlook indicates Dollar/Yen will remain range-bound for the immediate future.
Positive performances can be seen by looking at other currencies as GBP/CAD skyrockets 1.74% to trade around 1.6464. Having closed the previous session at 1.2062, GBP/USD is up 1.72% today to currently trade at around 1.2269. NZD/USD gained 1.34% and is currently trading at 0.6382.
Moreover, United States Non Farm Payrolls expected to decline to 200,000 while its preceding data was 261,000, data will be available tomorrow at 13:30 UTC.
Furthermore, Japan BoJ Governor Kuroda speech set for tomorrow at 06:00 UTC. United States Unemployment Rate is expected tomorrow at 13:30 UTC.
Dollar/Yen is now trading 8% away from its significant high of 150.1 first tested a month ago.
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